- Publicly traded Metaplanet acquired $451.06 million in Bitcoin, but its $105,412 per BTC average purchase price raised many questions.
- The event highlighted the drawback of a CSP strategy, which doesn’t guarantee buying at a discount.
- Bitcoin’s decline this Tuesday hits the company’s Bitcoin treasury, resulting in an unrealized loss of $683.24 million to $733.21 million.
Metaplanet is ending 2025 with a huge Bitcoin (BTC) purchase worth $451.06 million. The Tokyo-listed company announced that it had secured 4,279 BTC.
The company’s average purchase price of $105,412 per BTC, as revealed by CEO Simon Gerovich on his social media platform, raised some eyebrows, though. Critics highlighted that the premier digital asset hadn’t traded above $100K for over a month.
High Average Purchase Price Raises Questions
Neither Gerovich nor Metaplanet provided any explanation for the very high average purchase price in the company’s latest batch of Bitcoin transactions. However, a commenter on the top exec’s post explained that it may be due to the business exercising a Cash-Secured Put (CSP) options trading strategy.
Metaplanet notably leverages selling CSPs to collect premiums and acquire Bitcoin at predetermined prices. The high cost is likely due to a higher strike price that obligated the company to buy. This emphasizes the risks the method entails, which don’t always guarantee buying at a discount.
Metaplanet’s Bitcoin Holdings
The public firm currently holds 35,102 BTC in its coffers, comprising approximately 0.18% of Bitcoin’s 19.96 million circulating supply. Meanwhile, its BTC yield is now at 568.2% year-to-date (YTD).
BTC yield is a key performance indicator (KPI) popularized by Strategy (formerly MicroStrategy). It indicates the percentage change in the ratio of the company’s total Bitcoin holdings to its fully diluted shares outstanding over a specified period.
Investment in Bitcoin
Metaplanet had already spent $3.78 billion in building up its digital asset treasury (DAT). The figures translate to an average cost of $107,606 per BTC.
Given Bitcoin’s fluctuations between a $88,141.46 high and a $86,717.92 low in the last 24 hours heading to Tuesday morning (UTC), Metaplanet’s Bitcoin treasury is operating at a loss. The said values place its total unrealized losses at around $683.24 million to $733.21 million or at an average loss of $19,464.54 to $20,888.08 per BTC.
Interestingly, Metaplanet’s website shows that its Bitcoin net asset value (NAV) is still at $3.08 billion. On the other hand, the business’s debt outstanding is only $280 million, and its enterprise value is at $3.15 billion.
